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Currencies hit multi-month lows as Trump closes in on US presidency



<html xmlns="http://www.w3.org/1999/xhtml"><head><title>CEE MARKETS-Currencies hit multi-month lows as Trump closes in on US presidency</title></head><body>

By Anita Komuves and Karol Badohal

WARSAW/BUDAPEST, Nov 6 (Reuters) -Central Europe's currencies slipped to multi-month lows on Wednesday as markets bet Republican Donald Trump was moving closer to winning the U.S. presidential election, with Hungary's forint leading losses and at its weakest in nearly two years.

Analysts generally assume Trump's plans for restricted immigration, tax cuts and sweeping tariffs, if enacted, would put upward pressure on inflation, potentially limiting how far U.S. interest rates might ultimately be lowered and pushing up the dollar.

That dollar strength has been a drag on emerging markets, including in central Europe.

By 0654 GMT the Hungarian forint EURHUF=, central Europe's worst performer so far this year, dropped 0.7% on the day to trade at 412.35 per euro, its weakest since mid-December 2022.

The Czech crown EURCZK= and Polish zloty EURPLN= were both 0.4% weaker against the euro, trading at 25.45 and 4.3750 respectively. The crown was weakest since August, while the zloty hit its lowest since June.

Central European currencies have suffered losses in past weeks, led by the forint, as uncertainties around the U.S. presidential election and tensions in the Middle East put pressure on emerging market assets.



CEE MARKETS

SNAPSHOT

AT 0754 CET





CURRENCIES






Latest

Previous

Daily

Change



trade

close

change

in 2024

Czech crown

EURCZK=

25.4500

25.3380

-0.44%

-2.94%

Hungary forint

EURHUF=

412.3500

409.5250

-0.69%

-7.07%

Polish zloty

EURPLN=

4.3750

4.3589

-0.37%

-0.70%

Romanian leu

EURRON=

4.9760

4.9755

-0.01%

-0.03%

Serbian dinar

EURRSD=

116.9600

117.0600

+0.09%

+0.24%

Note: daily change

calculated from


1800 CET










Latest

Previous

Daily

Change




close

change

in 2024

Prague

.PX

1666.49

1666.4900

+0.00%

+17.85%

Budapest

.BUX

74343.85

74343.85

+0.00%

+22.64%

Warsaw

.WIG20

2236.48

2236.48

+0.00%

-4.55%

Bucharest

.BETI

17236.29

17236.29

+0.00%

+12.13%











Spread

Daily





vs Bund

change in

Czech Republic





spread

2-year

CZ2YT=RR

3.6580

0.2040

+143bps

+28bps

5-year

CZ5YT=RR

3.7730

-0.0200

+150bps

+0bps

10-year

CZ10YT=RR

4.1540

0.0580

+172bps

+6bps

Poland






2-year

PL2YT=RR

5.0160

0.0060

+279bps

+8bps

5-year

PL5YT=RR

5.3850

-0.0020

+311bps

+2bps

10-year

PL10YT=RR

5.6690

-0.0280

+324bps

-3bps


FORWARD







3x6

6x9

9x12

3M interbank

Czech Rep

CZKFRAPRIBOR=

3.84

3.61

3.48

4.05

Hungary

HUFFRABUBOR=

6.65

6.58

6.50

6.51

Poland

PLNFRAWIBOR=

5.73

5.40

5.06

5.84

Note: FRA quotes

are for ask prices




**************************************************************





Reporting by Karol Badohal in Warsaw, Anita Komuves in Budapest and Jason Hovet in Prague; Editing by Alex Richardson

For related news and prices, click on the codes in brackets: All emerging market news EMRG CEEU CEE/ Spot FX rates Eastern Europe spot FX EEFX= Middle East spot FX MEFX= Asia spot FX ASIAFX= Latin America spot FX LATAMFX= Other news and reports World central bank news CEN Economic Data Guide ECONGUIDE Official rates GLOBAL/INT Emerging Diary EMRG/DIARY Top events M/DIARY Diaries DIARY Diaries Index IND/DIARY
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